If you're a cupcake lover, get ready for some bad news. Gigi's Cupcakes has filed for Chapter 11 bankruptcy.
Documents show the cupcake chain filed on January 4, in the Texas Northern Bankruptcy Court.
The business was founded in 2008 by Gina 'Gigi' Butler as a boutique bakery in Nashville.
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Due to issues that were existing when we acquired the brand that we have not been able to resolve, we are taking this step to ensure the strength of the brand and the franchise system moving forward.
Gigi's Cupcakes released the following statement -
This is necessary to address the capital structure and primary banking relationship and is not a result of the health of the brand’s operations.
This filing will have no impact on operations at the store level. Customers will not see any changes in service or the quality of our products.
In addition, this filing will have no impact on our level of support we provide to each of our franchisees. The company will continue to pay suppliers, vendors and employees.
A woman who tried to order cupcakes for her child's birthday recently posted about the Germantown location being closed -- before the bankruptcy announcement.
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